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Credit Card Loans: To Use or Not To Use



I have mentioned quite a few times in this blog that I have several credit cards. And I think for that reason, credit card agents are always calling me- offering all sorts of things. It can be annoying at times but I just learned to deal with it. One of my goals next year is to get rid of some of my cards. I really just need one or two. Anyway, the reason for this post is because a credit card company recently sent me a check. Again, it is a loan offer. Actually I have already availed a loan offer from the same card company less than a month ago (I have two cards with them) so I am surprised to received another insta-cash offer again. The offer last time was for Php16,000 with 0.5% interest per month.

This time, the offer was much higher (Php40,000) and it has an attractive offer of 0% interest. Of course it is impossible that credit card companies would offer a loan without an interest so I check the terms and conditions and saw that they would charge a one time service fee that is 6% of the loan amount. Looking closely one can easily see that they would still charge 0.5% interest per month that way.

Anyway I sent the check back to the card company because I again can’t encash it to my bank account because the check bears my maiden name. They promise to resend it again after one week. I did that not because I would avail the loan. I just want to keep it in case of emergency since I still have more than a month to decide before the offer expires.

I kind of hate it because I want to eliminate credit card debts. However I am also tempted because I know that they are offering me loan with a very low interest rate and that any people would grab the chance to use it if they are given the opportunity I have.

I am also tempted to use the money to buy the new laptop I want or the aircon and ref my husband and I are planning to purchase. But after much thinking, I know that the wise decision is not to use it. Why? Because I need to focus on my goal of more savings and less debt. And I should only avail a loan if I can use that money for business so the money will grow and I can afford to pay the interest

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